Woodside posts record production as soft prices drag
The decline in oil and gas prices negatively affected Woodside’s full-year net profit, which fell by almost a quarter to US$2.7 billion ($3.8 billion) despite record production and low unit costs.
Underlying net profit after tax was US$2.6 billion ($3.7 billion), down eight percent from 2024.
Oil prices fell 20 percent in 2025, experiencing its worst year since 2020, due to the impact of the global supply surplus, which the International Energy Agency expects to continue in 2026.
Acting Chief Executive Liz Westcott said Tuesday that record production of 198.8 million barrels of oil equivalent and a 4 percent reduction in unit costs helped offset lower prices during the period.
“As a testament to the strength of our core businesses, we generated free cash flow of US$1.9 million ($2.7 million) during a period when capital expenditures were increasing and prices were falling,” he told analysts at an earnings briefing.
Ms Westcott was optimistic about oil’s appeal in 2026.
“Oil is a key commodity for Woodside, supported by a strong demand outlook,” he said.
“The challenge of decarbonising hard-to-abate sectors such as heavy transport and petrochemicals means oil demand is forecast to remain resilient as the world’s energy mix evolves.”
Ms Westcott is acting on behalf of former boss Meg O’Neill, who will become BP’s first female leader on April 1.
Woodside has not announced a permanent replacement for Ms O’Neill, but Ms Westcott confirmed the board was considering several internal and external candidates and was expected to make an announcement in the first quarter.
“I know everyone is very interested in the outcome, but I want to emphasize that what I care about and what I know is very important… is that we continue to execute on our strategy and add value to our shareholders through our disciplined decision-making and operational excellence,” he said.
Investors reacted warmly to the results, with production exceeding the upper end of guidance and Woodside shares rising 1.4 percent to $27.48 in early trading.
Woodside declared a final dividend of 59 cents per share, compared to 53 cents a year earlier.
“The strength of our core business has driven returns to shareholders, with Woodside generating approximately $11 billion in dividends since the completion of the merger in 2022,” Ms. Westcott said.
In project news, the Beaumont New Ammonia project off the US Gulf Coast achieved first production in December 2025; Trion, off the coast of Mexico, remains on target for first oil in 2028, and Scarborough’s first LNG cargo is due off the coast of Western Australia in 2026.
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